Henderson Park, the European real estate investment platform, has acquired a prime high street retail and office property in the centre of Madrid from Mutualidad General de la Abogacia, the Spanish pension fund for lawyers.
The transaction volume was not revealed, but Henderson said it secured €39 mln of senior acquisition financing from La Caixa to fund the deal.
Gran Via 43 is a 7,347 m2 high street asset across 11 levels, with the lower two floors comprising retail units and the remainder made up of office space. The asset is multi-let to seven tenants and the firm said it provided attractive asset management opportunities.
'This acquisition presents a rare opportunity to invest in a prime central Madrid location that offers considerable asset management potential,' said Nick Weber, founding partner of Henderson Park.
'Leveraging both the asset’s prominent positioning and the wider regeneration of the Gran Via area we are reviewing options for both the refurbishment and re-leasing of the existing space, as well as repositioning for alternative uses to fully unlock the property’s potential.'
According to Henderson, Gran Via is the single most visited street in Madrid and records the city’s highest footfall levels.
The deal represents the firm's third investment in the Spanish market, and second in Madrid, following the acquisitions of Los Cubos office asset in 2017 and a site to develop a 750-bed student housing scheme in Barcelona earlier this year.
'As illustrated by our investment activity to date, we are confident in the prospects for the Spanish market which has enjoyed a strong economic recovery and continues to draw high tourist numbers, underscoring our confidence in this latest addition to our portfolio,' Weber added.
Ashurst acted as Henderson Park's legal advisor for the acquisition.
